Mondelez International Inc (MDLZ): A Growth Story

Like Mondelez International Inc (NASDAQ:MDLZ), international business operations will continue to be an important growth driver for Kellogg. Currently, international markets contribute nearly 35% to the total revenue of the company. Kellogg’s longer term financial health looks good given its successful execution of its volume to value strategy.  Essentially it means Kellogg is focusing on higher margin goods instead of higher volume items.

With a market cap of around $100 billion, PepsiCo, Inc. (NYSE:PEP) is one of the largest global food and beverage companies of the world. Approximately two quarters of its sales are earned from international markets.

Pepsi owns also owns a strong product portfolio including carbonated, non-carbonated beverages and packaged snacks foods. It has delivered consistent and strong financial performance and should to continue to thrive in the future

As the global economies recover, Pepsi is positioned well, given its consumer loyalty and strong product portfolio. Moreover, given the rise in health concerns, it has been focusing on healthy products so as to keep up with the changing market trends and consumer preferences.

Pepsi is also targeting emerging markets to achieve its long term growth targets.  Recent marketing spend has been directed towards emerging markets like China and India.

Final words

Mondelez International Inc (NASDAQ:MDLZ) is likely to outperform its industry due to significant emerging market exposure.  Margin expansion could be another catalyst for robust growth. To further strengthen and expand its market share, Mondelez could acquire key brands at attractive prices.  All of these factors should equal significant outperformance.

Faizan Chudhry has no position in any stocks mentioned. The Motley Fool recommends PepsiCo. The Motley Fool owns shares of PepsiCo.

The article Mondelez: a Growth Story originally appeared on Fool.com.

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